A post-COVID surge in U.S. golf-club memberships has culminated in significant deals for private-club operators, most recently evidenced by Apollo Global Management’s sale of North America’s largest private country-club operator. Invited Clubs, known for managing marquee golf clubs such as Firestone Country Club in Ohio and TPC Craig Ranch in Texas, was acquired by KSL Capital Partners. Invited Clubs is North America’s largest private country-club operator, managing a portfolio of exclusive membership clubs that offer a range of amenities and social experiences to affluent members. The approximately $3 billion deal, including debt, confirms a previous Reuters report and highlights a thriving market.
This transaction reflects a broader trend, with M&A volume in golf and private membership clubs reaching a decade high this year. Industry experts attribute this growth to a ‘fear of missing out’ (FOMO) and ‘you only live once’ (YOLO) mentality, driving increased spending on experiences. Memberships, which can command annual fees in the tens of thousands and initiation fees exceeding $100,000, offer exclusivity and privacy alongside amenities. Daniel Cohen, a partner at Apollo, noted the ‘experience economy is alive and well,’ with golf a key beneficiary. The average net worth of Invited’s 140,000 members stands around $3 million.
Apollo acquired Invited Clubs nearly a decade ago, taking it private in 2017 for an enterprise value of $2.2 billion. Under Apollo’s ownership, the company’s annual operating earnings more than doubled to over $350 million. Interestingly, KSL Capital Partners had previously owned the company, then known as ClubCorp, from 2006 to 2013, before buying it back in this latest transaction. The resilience of these memberships was evident during the pandemic, with golf memberships growing as clubs adapted by offering outdoor activities. Membership revenue is considered ‘sticky,’ providing reliable income streams that customers rarely cancel, even during economic downturns.
